Detailed Narrative
Q3 FY26 Financial Performance Highlights
PSP Projects delivered its highest-ever quarterly revenue of ₹771 crores in Q3 FY26, representing a 24% year-on-year growth and an 11% quarter-on-quarter increase. For the nine-month period, revenue stood at ₹1,978 crores, growing 9% YoY. EBITDA for the quarter increased by 47% YoY to ₹52 crores, with the EBITDA margin at 6.73%, up from 5.67% in Q3 FY25. Net profit saw a substantial 159% YoY increase, reaching ₹16 crores.
Order Book and Inflow Dynamics
As of December 31, 2025, the outstanding order book was ₹9,178 crores, marking a 43% YoY growth. Group projects constitute 59% of this, while external projects account for 41% (₹3,738 crores). Q3 FY26 saw an order inflow of ₹957 crores, a 151% YoY increase, entirely from the Adani Group. The current bid book stands at ₹6,600 crores, with PSP Projects being the lowest bidder for the ₹965 crore Ambaji Corridor Development Project.
Project Execution and Key Completions
The improved performance was attributed to strong project execution, better workfront availability, and improved labor deployment. During Q3 FY26, the company successfully completed 5 projects, including the Veer Savarkar Sports Complex in Ahmedabad and Terminal 1 & 2 forecourt area development at Ahmedabad Airport. Ongoing projects like SMC high-rise and RVNL are progressing as per schedule, with MEP and finishing work underway.
Capital Expenditure and Balance Sheet Health
The company incurred ₹80 crores in capex during Q3 FY26, bringing the year-to-date capex addition to ₹153 crores. The full-year capex is projected to be around ₹200 crores, primarily for new shuttering materials and equipment for Adani Group projects. As of December 31, 2025, total fixed deposits were ₹215 crores, with ₹43 crores lien-free. Fund-based utilization was ₹294 crores against sanctioned credit facilities of ₹1,497 crores, leaving ₹500 crores available for utilization.
Margin Outlook and Labor Code Impact
Management reiterated its target of achieving an 8-9% EBITDA margin from the next year onwards. The Q3 FY26 EBITDA margin was impacted by a one-time📎 ₹8 crore employee benefits expense due to the new labor code, which, if adjusted, would have brought the margin to 7.71%. For Adani Group projects, the company expects commodity price increases to be a pass-through, mitigating margin risk.
Arbitral Award and Receivables
PSP Projects received a favorable arbitral award of ₹61.44 crores from BMCMC in the PSP vs Bhiwandi case, with an additional 9% interest per annum. The total amount, including interest, is approximately ₹79 crores as of the call date. BMCMC is required to pay within 60 days, after which the interest rate will increase to 11%. Receivables from SDB remain unchanged from the previous quarter but will be paid with interest.
Revised FY26 Order Book Target and Future Inflow
The company revised its FY26 order book target downwards from the earlier guidance of ₹14,000-15,000 crores to ₹11,000-12,000 crores, citing a net ₹800 crore impact from project scope revisions and cancellations. For FY27, management anticipates an order inflow of ₹7,000-8,000 crores, primarily from the Adani Group, alongside maintaining a 15-20% non-Adani order book.